Leidos Holdings Reports Strong Q4 2025 Earnings and Strategic Growth Plans
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 17 2026
0mins
Should l Buy LDOS?
Source: seekingalpha
- Strong Financial Performance: Leidos reported revenues of $17.2 billion for 2025, reflecting a 3.1% year-over-year increase, although Q4 revenues were $4.2 billion, down 3.6% year-over-year; however, normalizing for calendar effects, Q4 revenue would have grown approximately 4%, demonstrating the company's resilience and adaptability in the market.
- Improved Profitability: The adjusted EBITDA margin for 2025 was 14.1%, a 120 basis point increase from the previous year, with non-GAAP diluted earnings per share growing by 17% and free cash flow increasing by 26%, indicating ongoing improvements in profitability and cash flow management.
- Increased Strategic Investment: Management announced that capital expenditures will triple to $350 million in 2026, focusing on high-return projects aimed at accelerating growth in defense, health, and digital modernization sectors.
- Order and Market Outlook: The company achieved net bookings of $5.6 billion in Q4, with a book-to-bill ratio of 1.3, indicating strong market demand, and expects revenues for 2026 to range between $17.5 billion and $17.9 billion, reflecting growth of up to 4%, laying a solid foundation for future sustained growth.
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Analyst Views on LDOS
Wall Street analysts forecast LDOS stock price to rise
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 149.220
Low
178.00
Averages
219.70
High
235.00
Current: 149.220
Low
178.00
Averages
219.70
High
235.00
About LDOS
Leidos Holdings, Inc. is a holding company, which operates through its wholly owned subsidiary, Leidos, Inc. (Leidos). The Company's segments include National Security & Digital, Health & Civil, Commercial & International and Defense Systems. Its National Security & Digital business provides technologically advanced services, solutions and products, as well as mission software capabilities for defense and intelligence customers in the areas of cyber, logistics, security operations and decision analytics. Its Health & Civil business provides services and solutions to federal and commercial customers in the areas of public health, care coordination, life and environmental sciences and transportation. Its Commercial & International business delivers a portfolio of products, services, and solutions aimed at securing national assets, modernizing energy and critical infrastructure, and enhancing mission outcomes. The Company serves government and commercial customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Significant Contract Value: Leidos has been awarded an $869 million contract by the U.S. Army, aimed at enhancing advanced battlefield decision-making capabilities, reflecting the company's strong position and demand in the defense sector.
- Five-Year Project Scope: The five-year MACRO II contract involves the development and integration of secure systems utilizing AI, advanced networking, and open architecture across land, sea, air, space, and cyber domains, enhancing the military's data processing capabilities.
- Enhanced Data Processing: This program is designed to assist military forces in converting large volumes of data into actionable insights, thereby improving operational speed and effectiveness, which is critical in modern warfare's information processing demands.
- Strategic Alignment: A Leidos executive noted that this initiative aligns with the company's NorthStar 2030 strategy, focusing on digital modernization and mission software development, further solidifying its position in the defense and security ecosystem.
See More
Leidos Secures $456M Military OneSource Contract
- Large Contract Award: Leidos has secured a $456 million contract over four years to support over 4.7 million military members and families with 24/7 access to counseling, tax assistance, relocation, and family support services, significantly enhancing its market position in defense support.
- Robust Operational Capacity: The company manages over 2.8 million medical exams annually, operates more than 1,200 counselors across 135 military bases, and serves clients in 44 countries, showcasing its strong operational capabilities in global military health support services.
- Digital Health System: Leidos runs a major digital health system utilized by nearly 10 million people, further solidifying its leadership in health services and providing technological support for the implementation of the new contract.
- Strategic Alignment: This contract aligns closely with Leidos' long-term NorthStar 2030 growth strategy, which focuses on expanding health and support services, indicating the company's ongoing growth potential within the defense and security ecosystem.
See More
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- Volume Spike: The company experienced a trading volume of 64.9 million shares, approximately 54% above its three-month average of 41.9 million shares, indicating strong market interest in the AI sector.
- Market Performance: Despite the rise in BigBear.ai's stock price, its gains were lower compared to peers like Leidos and SAIC, which increased by 1.32% and 1.16% respectively, suggesting a market preference for larger firms.
- Future Outlook: BigBear.ai's business is contract-based in defense intelligence and decision-support systems, with future contract announcements and federal spending cycles being crucial for determining whether recent gains can be sustained.
See More
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- Total Contract Value Approaching $1.2B: With the awards received in July and September 2025, Leidos now holds nearly $1.2 billion in production contracts tied to this program, demonstrating the company's sustained growth potential in defense projects.
- Robust System Capabilities: The IFPC Inc 2 system is a mobile, ground-based air defense platform designed to defend against cruise missiles and unmanned aerial threats, enhancing the U.S. military's defensive capabilities in alignment with national security strategy needs.
- Future Order Potential: The funding from this contract also supports ongoing research, development, and testing, with potential future orders through 2029, indicating Leidos' long-term strategic planning and execution capabilities in the defense sector.
See More
Leidos Secures $617 Million Army Contract for Air Defense System
- Significant Contract Value: Leidos has secured a $617 million contract from the U.S. Army to provide additional launchers for its Indirect Fire Protection Capability Increment 2 (IFPC Increment 2) ground-based air defense system, which will significantly enhance the company's revenue and market position.
- Demand for System Upgrades: The signing of this contract reflects the U.S. military's ongoing demand for advanced ground-based air defense systems, indicating that Leidos's technological capabilities and market competitiveness in the defense sector are continuously improving.
- Strategic Partnership Opportunities: By collaborating with the U.S. Army, Leidos not only solidifies its position among defense contractors but may also pave the way for future similar projects, thereby further expanding its market share.
- Enhanced Industry Influence: The acquisition of this contract will bolster Leidos's influence in the defense industry, likely attracting more investor attention to its future growth potential and driving continued innovation in defense technologies.
See More
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- Significant Contract Value: Leidos Holdings, Inc. announced it has secured a $617 million contract from the U.S. Army to build and deliver additional launchers for the Indirect Fire Protection Capability Increment 2 (IFPC Inc 2) system, further solidifying its market position in defense.
- Total Contract Value Approaching $1.2 Billion: Combined with the $356 million awarded in July and September 2025, Leidos now has nearly $1.2 billion in production contracts with the U.S. Army, indicating strong demand and growth potential in the defense contracting market.
- Commitment to Deliver Over 100 Launchers: Leidos has committed to delivering more than 100 launchers, with the contracts supporting production as well as ongoing research, development, and testing, ensuring a continuous revenue stream for the company in the coming years.
- Future Order Potential: These contracts pave the way for potential future orders through 2029, reflecting Leidos' long-term strategic planning and intent to expand its footprint in the defense sector.
See More
Leidos Secures $869M U.S. Army Contract for Advanced Decision-Making Systems
- Significant Contract Value: Leidos has been awarded an $869 million contract by the U.S. Army, aimed at enhancing advanced battlefield decision-making capabilities, reflecting the company's strong position and demand in the defense sector.
- Five-Year Project Scope: The five-year MACRO II contract involves the development and integration of secure systems utilizing AI, advanced networking, and open architecture across land, sea, air, space, and cyber domains, enhancing the military's data processing capabilities.
- Enhanced Data Processing: This program is designed to assist military forces in converting large volumes of data into actionable insights, thereby improving operational speed and effectiveness, which is critical in modern warfare's information processing demands.
- Strategic Alignment: A Leidos executive noted that this initiative aligns with the company's NorthStar 2030 strategy, focusing on digital modernization and mission software development, further solidifying its position in the defense and security ecosystem.
See More
Leidos Secures $456M Military OneSource Contract
- Large Contract Award: Leidos has secured a $456 million contract over four years to support over 4.7 million military members and families with 24/7 access to counseling, tax assistance, relocation, and family support services, significantly enhancing its market position in defense support.
- Robust Operational Capacity: The company manages over 2.8 million medical exams annually, operates more than 1,200 counselors across 135 military bases, and serves clients in 44 countries, showcasing its strong operational capabilities in global military health support services.
- Digital Health System: Leidos runs a major digital health system utilized by nearly 10 million people, further solidifying its leadership in health services and providing technological support for the implementation of the new contract.
- Strategic Alignment: This contract aligns closely with Leidos' long-term NorthStar 2030 growth strategy, which focuses on expanding health and support services, indicating the company's ongoing growth potential within the defense and security ecosystem.
See More
BigBear.ai Shares Surge 10.99% Amid Increased Trading Activity
- Stock Price Surge: BigBear.ai shares rose by 10.99% to close at $4.12, reflecting investor anticipation for the upcoming earnings report and a focus on demand trends in defense-related artificial intelligence.
- Volume Spike: The company experienced a trading volume of 64.9 million shares, approximately 54% above its three-month average of 41.9 million shares, indicating strong market interest in the AI sector.
- Market Performance: Despite the rise in BigBear.ai's stock price, its gains were lower compared to peers like Leidos and SAIC, which increased by 1.32% and 1.16% respectively, suggesting a market preference for larger firms.
- Future Outlook: BigBear.ai's business is contract-based in defense intelligence and decision-support systems, with future contract announcements and federal spending cycles being crucial for determining whether recent gains can be sustained.
See More
Leidos Secures $617M Army Contract for Air Defense System
- Significant Contract Value: Leidos has secured a $617 million contract from the U.S. Army to manufacture and deliver additional launchers for the Indirect Fire Protection Capability Increment 2 (IFPC Inc 2) air defense system, further solidifying its market position in the defense sector.
- Total Contract Value Approaching $1.2B: With the awards received in July and September 2025, Leidos now holds nearly $1.2 billion in production contracts tied to this program, demonstrating the company's sustained growth potential in defense projects.
- Robust System Capabilities: The IFPC Inc 2 system is a mobile, ground-based air defense platform designed to defend against cruise missiles and unmanned aerial threats, enhancing the U.S. military's defensive capabilities in alignment with national security strategy needs.
- Future Order Potential: The funding from this contract also supports ongoing research, development, and testing, with potential future orders through 2029, indicating Leidos' long-term strategic planning and execution capabilities in the defense sector.
See More
Leidos Secures $617 Million Army Contract for Air Defense System
- Significant Contract Value: Leidos has secured a $617 million contract from the U.S. Army to provide additional launchers for its Indirect Fire Protection Capability Increment 2 (IFPC Increment 2) ground-based air defense system, which will significantly enhance the company's revenue and market position.
- Demand for System Upgrades: The signing of this contract reflects the U.S. military's ongoing demand for advanced ground-based air defense systems, indicating that Leidos's technological capabilities and market competitiveness in the defense sector are continuously improving.
- Strategic Partnership Opportunities: By collaborating with the U.S. Army, Leidos not only solidifies its position among defense contractors but may also pave the way for future similar projects, thereby further expanding its market share.
- Enhanced Industry Influence: The acquisition of this contract will bolster Leidos's influence in the defense industry, likely attracting more investor attention to its future growth potential and driving continued innovation in defense technologies.
See More
Leidos Secures $617 Million Army Contract for Air Defense System
- Significant Contract Value: Leidos Holdings, Inc. announced it has secured a $617 million contract from the U.S. Army to build and deliver additional launchers for the Indirect Fire Protection Capability Increment 2 (IFPC Inc 2) system, further solidifying its market position in defense.
- Total Contract Value Approaching $1.2 Billion: Combined with the $356 million awarded in July and September 2025, Leidos now has nearly $1.2 billion in production contracts with the U.S. Army, indicating strong demand and growth potential in the defense contracting market.
- Commitment to Deliver Over 100 Launchers: Leidos has committed to delivering more than 100 launchers, with the contracts supporting production as well as ongoing research, development, and testing, ensuring a continuous revenue stream for the company in the coming years.
- Future Order Potential: These contracts pave the way for potential future orders through 2029, reflecting Leidos' long-term strategic planning and intent to expand its footprint in the defense sector.
See More
